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What I've Been Reading This Week


Every so often, I come across an article that turns the conversation on a particular topic on its head.  This was one of those weeks.  Dale Buss wrote an article earlier this week which makes a compelling case for why rising minimum wage rates across the country might actually be having unintended & unwanted consequences.  From depressed labor workforces in certain industries to a lack of a reduction in poverty among hourly workers, Buss makes a strong case for why rising minimum wage rates might actually be killing jobs and leading to higher costs that are passed onto consumers.  If you are going to read one article this week, this is the one to read.

As always, below are a couple articles that caught my eye this week.


A Sobering Look at the Realities of Rising Minimum Wage Rates

Readers might recall minimum wage rates have been a hot button issue recently (well it has been for a while, but picked up during the past election cycle).  Dale Buss recently wrote an article for Area Development which provides one of the more frank, if not honest, examinations of the economic and fiscal realities of rising minimum wage rates across the country.  Buss painstakingly walks readers through the facts and parses the data to show that rising minimum wage rates across the country might be the catalyst for a potential recession.



At some of Amazon's fulfillment centers in Germany, the company has introduced a sick leave policy that rewards employees for not taking sick leave.  These employees can earn a bonus ranging from 6% - 10% of their monthly salary if they have used few (or none) of their paid sick days.  However, there is a stipulation that these top bonuses can only be achieved if fellow employees also do not take sick leave that month as well.  This 'peer pressure' sort of incentive program has come under fire in Germany with many legal experts expecting it to be challenged.  Regardless of the viability of this type of sick leave incentive program, at the very least, it is an innovative concept.



Earlier this month, a federal judge in Seattle temporarily halted the implantation of a law that would allow drivers of ride hailing companies like Uber and Lyft to unionize over wages and working conditions.  This matter arises out of a suit brought by the U.S. Chamber of Commerce who has sought to prevent unionization by these drivers.  In announcing his decision to temporarily halt the implementation of the law, Judge Robert Lasnik indicated the move should not be interpreted as an indication of how he would ultimately rule on the case.  Instead, Judge Lasnik stated additional time is needed to allow for a proper review of the law and whether it could survive judicial scrutiny.  If this law is upheld, it would likely pave the way for similar laws in other cities and states.  Stay tuned.

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